Working Holiday tax calculation

Hey JunP,

It’s brilliant that you’re so thorough with your tax setup for working holiday makers. To ensure the tax calculations are spot-on, it’s best to consult your accountant, as they’re the experts in untangling nuances like thresholds.

Cheers,

Doreen

Hi Doreen,

Thanks for the reply.

I’m pointing more towards wrong tax calculation in MYOB Accountright. MYOB provides a selection of working holiday tax rate but it’s not calculate correctly. It’s misleading. 
Cheers,

Hi JunP,

The tax calculation you're seeing for Working Holiday Makers is spot on! For income between $0 and $45,000, the tax rate is 15%. So, with $900 in wages, that 15% equals $135—math checks out perfectly.

If you’d like to double-check the calculation, just head to the employee card.

• Click on Payroll Details.
• Select Taxes.
• Hit the arrow next to PAYG Withholding.
• In the Tax Table Information, make sure to choose Working Holiday Maker from the dropdown for accurate calculations and percentages.

For deeper insights, feel free to explore this help page! PAYG tax tables
 

And hey, when it comes to tricky details like tax thresholds, it’s always a good idea to chat with an accountant—they’re the real pros at untangling the finer points!

I hope this helps!

Regards,
Earl

HiEarl_HD​ ,

thank you for reply.

income 0- $45,000 is yearly range, do you aware?

in tax table information, have you tried to select other tax rates? Even for working holiday rate-not registered, wages range is weekly. Please compare more closely.

Look back to tax table for working holiday, is that means weekly range is 0-$45000? Anyone earned that rate? Of course $900 wages will have $135 if it’s in that range.

thanks again.

Hi Earl_HD​ ,

Please see the screenshot attached for more clearer view.

Wages? 0-$45000

Hi JunP,

That’s a good observation and thanks for sending screenshot. You’re right that the $0 to $45,000 income is an annual figure. MYOB takes your employees’ weekly or fortnightly pay and works out what that would be over a whole year to figure out which tax bracket they land in. That way, tax gets calculated just like the ATO requires for each type of employee and each pay cycle. If you want to double-check the numbers, you can confirm this on the ATO’s tax withheld calculator. It’ll show you exactly how much tax should be coming out for any amount to pay. 

Cheers,

Princess